Five reasons why you must write a Will

Indian society has transitioned from ancestral wealth to self-earned assets in recent years. While many families still possess significant ancestral properties like land, homes, or heirloom jewelry, an increasing number of individuals now hold greater value in assets they've acquired independently -- such as homes, land, jewelry, vehicles, shares, mutual funds, bank deposits, and insurance policies -- compared to inherited wealth from previous generations.

Despite established inheritance laws governing ancestral property distribution across various communities, there are fewer restrictions on how self-earned wealth can be distributed or disposed of. This grants individuals the freedom to decide the allocation of their assets among loved ones.

However, the practice of drafting a Will remains uncommon in India, often due to emotional reluctance or the desire to avoid premature distribution of property. Some fear potential family discord or prefer to entrust property decisions to the goodwill of their descendants. Nevertheless, the benefits of having a valid Will outweigh these concerns.

As a general guideline, creating a Will becomes crucial if you possess multiple assets, have dependents, or are nearing or over the age of 50. Here are five compelling reasons why everyone should consider writing a Will:

1. Ensures Fair Distribution

A Will ensures that your assets are distributed according to your wishes, providing emotional solace and financial security to your family during a difficult time. It prevents disputes among family members and legal complexities that could arise without clear instructions.

2. Avoids Legal Battles

Without a Will, there's a risk of prolonged and costly legal battles among heirs vying for a share of the estate, potentially straining familial relationships. In the absence of a Will, the distribution of assets will ultimately be decided by the court under the Indian Succession Act. However, this can lead to family members losing a significant portion of the estate to legal fees. Furthermore, prolonged legal disputes can cause lasting rifts within the family, which may be even more damaging in the long run. It's generally more efficient and cost-effective to draft a Will, ensuring your intentions are clear and minimizing potential conflicts.

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3. Management of Property

For those with extensive or diverse assets—such as real estate, farms, or collections of art or books- a Will specifies how these assets should be managed or distributed. For example, you might wish for your art collection to be donated to a particular museum or for a portion of your estate to be allocated to a charity. A Will allows you to clearly outline these wishes, with the executor responsible for carrying them out according to your directives.

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4. Appointing a Guardian for Minor Children

Parents often prioritize the welfare of their children, especially if the children are minors or not yet capable of managing their finances. In your Will, you can appoint a legal guardian to ensure your children receive their fair share of the estate and that their financial needs are met in your absence.

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5. Protecting Your Business

If you own a business, creating a Will is crucial for succession planning and ensuring the continuity of the business according to your wishes. A Will provides for a smooth succession in your business, which is crucial for its survival and growth after your passing. By specifying your chosen heir or co-owners in a Will, you can ensure that the business continues to thrive in capable hands. Without a Will, ownership disputes may arise, leading to uncertainty and division, which could potentially jeopardize the future of the business.

A well-drafted Will, written in clear language and executed by a trusted individual, is one of the best legacies you can leave for your loved ones. So, set aside any reservations and take the necessary steps to secure your family's future and your business's continuity.

(Karan Deo Sharma is a Mumbai-based finance and equity markets specialist).

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